MTU Aero Earnings: Strong Performance Aligned With Management Guidance; Our Fair Value Is Unchanged
Wide-moat MTU Aero Engines reported strong first-quarter results, aligned with management guidance. Our fair value estimate is unchanged.
Wide-moat MTU Aero Engines reported strong first-quarter results, aligned with management guidance. Our fair value estimate is unchanged.
There is potential to increase share on the GTF program to about 20%-22% as a result of a long-standing partnership with Pratt & Whitney.
Further technical issues from in-service GTF engines could hit the margins and production ramp-up.
Metric
|
MTX
|
RTX
|
GE
|
---|---|---|---|
Price/Earnings (Normalized) | 22.01 | 20.16 | 48.10 |
Price/Book Value | 4.38 | 2.29 | 5.91 |
Price/Sales | 2.41 | 2.06 | 2.55 |
Price/Cash Flow | 14.29 | 22.23 | 42.15 |
Metric
|
MTX
|
RTX
|
GE
|
---|---|---|---|
Quick Ratio | 0.77 | 0.64 | 0.76 |
Current Ratio | 1.12 | 1.07 | 1.17 |
Interest Coverage | −2.42 | 3.15 | 5.22 |
Metric
|
MTX
|
RTX
|
GE
|
---|---|---|---|
Return on Assets (Normalized) | 6.21% | 2.51% | 2.83% |
Return on Equity (Normalized) | 19.59% | 6.05% | 15.41% |
Return on Invested Capital (Normalized) | 15.68% | 5.17% | 9.19% |
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
---|---|---|---|---|---|
GE
| GE Aerospace | Rhxjqrznx | Fjdr | $176.4 Bil | |
RTX
| RTX Corp | Lpcdknybs | Ydhq | $138.6 Bil | |
EADSY
| Airbus SE ADR | Tdxwpcvt | Lnhc | $136.8 Bil | |
BA
| Boeing Co | Xycnqpwq | Hlk | $112.3 Bil | |
LMT
| Lockheed Martin Corp | Hhxgvyfbk | Lmrd | $111.4 Bil | |
GD
| General Dynamics Corp | Qkjxrqnxtz | Mjbh | $80.8 Bil | |
TDG
| TransDigm Group Inc | Ngzvzgpmfx | Bqdbx | $72.0 Bil | |
NOC
| Northrop Grumman Corp | Qxvxbmgqj | Mwm | $69.7 Bil | |
BAESY
| BAE Systems PLC ADR | Tzpzzwnrp | Xfhn | $52.1 Bil | |
RYCEY
| Rolls-Royce Holdings PLC ADR | Zhtnlkbty | Qchttk | $44.9 Bil |